Is this juice worth the squeeze:
I am presently 65 and doing some Roth conversions. My minimum income is comprised of Pension (non cola) plus deferred income plus dividends. This amount puts me into the 24% federal tax bracket. With social security and RMD’s I will likely go into a higher bracket in the future, but there is little to no chance of being in a lower bracket ever. Converting to the top of the 3rd IRMAA bracket seems like a no brainer, as from a tax perspective it is at least breakeven, so i will definitely convert up to just under $322K in income in 2024. I am eyeing the next IRMAA bracket ($386K) for an additional $64K in conversion, however including the additional Part B and Part D premiums totaling $250 per month, making the effective tax rate 28.7%, this look pretty marginal. I would appreciate the thoughts of members of this Forum and thanks in advance!
I am presently 65 and doing some Roth conversions. My minimum income is comprised of Pension (non cola) plus deferred income plus dividends. This amount puts me into the 24% federal tax bracket. With social security and RMD’s I will likely go into a higher bracket in the future, but there is little to no chance of being in a lower bracket ever. Converting to the top of the 3rd IRMAA bracket seems like a no brainer, as from a tax perspective it is at least breakeven, so i will definitely convert up to just under $322K in income in 2024. I am eyeing the next IRMAA bracket ($386K) for an additional $64K in conversion, however including the additional Part B and Part D premiums totaling $250 per month, making the effective tax rate 28.7%, this look pretty marginal. I would appreciate the thoughts of members of this Forum and thanks in advance!
Statistics: Posted by Seoulseeker — Sat May 25, 2024 3:23 pm — Replies 6 — Views 388
